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A firm operates with the production function Q = 1.4K 0.4 L0.5.
(a) If the prices of labor and capital are $10 and $20, respectively, and the firm's allocates only $8,000 a day for production costs (net of fixed cost) how many units of output can the firm produce? (Use the substitution method).
(b) How many units of labor and capital does firm employ?
(c) If the price of the good is $35 per unit, what is the daily profit of this firm?
1. why do economists diagree about the likelihood of a hard-landing?2. why are countries that hold large dollar
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The Widget Co. has the following inverse demand curve: p= 970.15-19.27x, where x is the number of units produced and sold. The cost function C(x)= 81.8+ .84x+ 15x^2. Decide the quantity x that maximizes profit.
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describe how the budget constraint of a house hold in a two period model is affected by each of the following changes.
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In most markets, majority group workers have higher average wages than minority group workers - resume audit study conducted by Bertrand and Mullainathan
Think about an extension of the specific-factors model, in which, in addition to their wage, labour also earns some part of the rental on specific factor in their industry,
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